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Is Marsico 21ST Century Fund (MXXIX) a Strong Mutual Fund Pick Right Now?

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Having trouble finding a Large Cap Growth fund? Well, Marsico 21ST Century Fund (MXXIX - Free Report) would not be a good potential starting point right now. MXXIX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.

Objective

We classify MXXIX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.

History of Fund/Manager

MXXIX finds itself in the Marsico family, based out of Denver, CO. Marsico 21ST Century Fund made its debut in February of 2000, and since then, MXXIX has accumulated about $378.72 million in assets, per the most up-to-date date available. The fund's current manager, Brandon Geisler, has been in charge of the fund since October of 2011.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 22.28%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 23.29%, which places it in the top third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. MXXIX's standard deviation over the past three years is 21.85% compared to the category average of 22.81%. The fund's standard deviation over the past 5 years is 17.67% compared to the category average of 18.42%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.03, the fund is likely to be as volatile as the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 3.81, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, MXXIX is a no load fund. It has an expense ratio of 1.34% compared to the category average of 1.02%. MXXIX is actually more expensive than its peers when you consider factors like cost.

Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.

Bottom Line

Overall, Marsico 21ST Century Fund ( MXXIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a poor potential choice for investors right now.

Want even more information about MXXIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.


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